Health Care Takeover Targets

Beth Lilly, a manager of the Teton Westwood Mighty Mites fund, names two small companies well-positioned to be acquired.

Last year there were plenty of takeovers in the health-care sector -- but mostly bite-size ones. The number of deals rose 6% and ranked second among the past 10 years, while the dollar value plunged 38% and ranked ninth, according to data tracker Irving Levin Associates.

Expect another surge in small takeovers this year, says Beth Lilly, one of the managers of Gamco's $640 million Teton Westwood Mighty Mites (WMMAX) fund, which...